After the newly-formed “political negotiation team” convened on Monday evening for the first time, Finance Minister Yanis Varoufakis commented that the while the negotiations re difficult and complicated, his team would do everything possible for an honest agreement. The Brussels Group teleconference and the negotiations were at the top of the agenda.
According to the Minister of Finances, one the main problems in the negotiations is that the institutions constantly change their opinion, making the negotiations increasingly complicated. He also stressed that the Greek government has been tasked “to change the philosophy of a failed program”.
By his side, the Alternate Minister of International Economic Relations Euclid Tsakalotos hinted towards a gradual, “step-by-step” agreement with the institutions. He argued that “we are constantly learning from our experiences and mistakes” and underlined the government’s unity, in an effort to dismiss rumors regarding changes in the negotiation team. Mr. Tsakalotos told journalists that the team had informally existed “for months” and it has only just been formalized.
The improved “Varoufakis list”
The “step-by-step” agreement will be based on the “Varoufakis list” of measures and reforms, a draft of which will be prepared by Tuesday evening, in order to be discussed at the ministerial council on Thursday. The list reportedly addresses budgetary issues, tax administration, tenders for television frequencies, taxation of television advertising, administrative reform and reforming the Civil Procedure Code.
Mr. Varoufakis noted that the list has been improved, but it does not include provisions regarding bad loans, the proposed formation of a “bad bank” and interventions in the pension system. The bill will include provisions to improve the recoverability of VAT, however any changes to the VAT rates will be negotiated in June. A rumored tax on overnight stays for hotels, which was introduced as an alternative to a prospect of raising the VAT rate on the islands, will not be included.
